An Executive Committee meeting of the Birmingham Water Works Board held in Birmingham, Alabama Thursday February 27, 2014. (Frank Couch/fcouch@al.com)

BIRMINGHAM, Alabama --Members of the Birmingham Water Works Board and city leaders are saying "no deal"when it comes to a new compromise proposal to reconfigure the utility board and implement new operating rules.

Under Waggoner's new plan, Birmingham would retain a board majority with four seats, while Jefferson County and other service areas would gain representation on the expanded board with three new seats.

Other changes including board term limits, mandatory public hearings before rate increases and caps of board pay would remain in the legislation.

Waggoner's proposal, however, received a cold reception from Birmingham city officials and was flatly rejected by Water Works Board leaders.

"The board's position still remains the same on this issue. No legislation. No change," Water Works spokesman Rick Jackson told AL.com.

Board member Ann Florie said she was not consulted before an official board statement was issued and offered a dissenting view. While her colleagues issued a blanket rejection, Florie called it reasonable for leaders to begin a dialogue with Waggoner before summarily dismissing it.

"We should at least have a conversation about the substitute bill," she said. "We owe it to the ratepayers to do that."

Compromise with caution

State Sen. Rodger Smitherman, D-Birmingham, called proposed board reconfiguration unnecessary. He said talks would continue to find common ground on other issues of term limits, pay caps and public hearings.

"I think that's a start but that's not the final thing that could be acceptable," he said of Waggoner's latest bill. "The disagreement is about actual control and there's no justification for it."

Smitherman repeated earlier arguments, saying the Birmingham City Council already honors a gentleman's agreement to appoint one non-Birmingham member. Florie is the current non-Birmingham resident.

"Beyond that, these other outlying areas don't have justification for being on the board," Smitherman said, regarding the surrounding areas of St. Clair, Blount, Walker and Shelby counties.

And while he said there is room for compromise, Smitherman cautioned that Republicans could attempt to ramrod legislation through, as was the case in the last session with school overhaul legislation.

Waggoner said he was trying to end controversy over board representation by maintaining Birmingham's majority and shifting the focus on needed board reforms.

Council members still have heartburn over any change to the Water Board's composition.

Council President Johnathan Austin said the city's position against the legislation remains the same.

"We said that the city does not support any changes to the Water Works governance," he said. "Obviously, the main issue is the composition of the board itself and the city retaining its appointing authority of the Water Works Board. That's obviously the main issue of contention."

Austin said other points such as term limits are already being discussed by the City Council and could come up for a council vote.

"It's ready to be voted and approved on at any time," he said.

Austin said if legislators are concerned about board pay and other reforms, then that should be the focus of their efforts in collaboration with the council.

Board pay is set by the Legislature, while the City Council appoints members. The city could set its own rules to limit board service, Austin noted.

"They should allow the city to solve the problems that we can fix instead of trying to ram some legislation down the House and Senate's throat," Austin said.

Councilwoman Lashunda Scales (Frank Couch/AL.com)

Councilwoman Lashunda Scales, chairwoman of the Utilities Committee, said face-to-face negotiations are needed.

"While Sen. Jabo Waggoner's official compromise is welcomed, I believe that it would be in the best interest of all parties involved for the leaders of the city of Birmingham and the sponsor of this bill to have a face-to-face meeting so that a realistic compromise can be achieved," Scales said.

While Water Works Board members and some city leaders reject Waggoner's bill, the real decision will be made at the State House, where Waggoner said the influence of lobbyists remains strong.

With a Republican majority in both the House and Senate, Waggoner called it reasonable to assume his bill would have a fair chance at passage, but the veteran lawmaker left room for doubt.

"I don't know the situation in the House, but I feel reasonably comfortable unless I have been out-lobbied," Waggoner said. "There will be winners and losers, and if I lose, the lobbyists win."